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Comex Trading Signals and Market News – 02 June 2016

INTERNATIONAL COMMODITY NEWS :

Copper futures tumbled by more than 1 per cent during late morning trade in the domestic market on Wednesday as investors and speculators exited positions in the industrial metal after data showed that manufacturing activity in China the world’s biggest metals consumer continued to contract in May signaling a worsening economic slowdown in the country darkening the demand outlook for the metal.

Gold prices rose with investors noting mixed China PMI estimates. The Caixin manufacturing PMI came in at 49.2 below the 49.3 expected and down from the previous 49.4. Earlier in China the semi-official CFLP manufacturing PMI for May came in a bit higher than expected at 50.1 unchanged from the previous month.The non-manufacturing PMI for May came in at 53.1 down from 53.5 the previous month.

Crude oil prices fell as production from the major Middle East exporters was expected to remain high or even increase. Traders said that the dips were a result of the prospect of rising output from Middle East members of the Organization of the Petroleum Exporting Countries (OPEC) which meets this week in Vienna to discuss its market policy which most analysts say will continue to focus on defending market share instead of propping up prices by controlling output.

ECONOMY NEWS :

Japanese Prime Minister Shinzo Abe told lawmakers on Wednesday that he has decided to delay a scheduled sales tax hike by two-and-a-half years, putting his plans for fiscal reforms on the back burner amid more weakness in the economy. The widely-anticipated delay will be welcomed by a majority of voters, who will cast ballots in an upper house election in July. But it is fanning doubts about Abe’s plans to curb Japan’s huge public debt and fund ballooning social welfare costs of a fast-ageing population.

China’s central bank on Wednesday said it injected a total of 290.57 billion yuan ($44.1 billion) through short- and medium-term liquidity facilities in May to help support credit growth and the slowing economy.That amount of liquidity injections was down from 715.76 billion yuan in April.The People’s Bank of China extended 290 billion yuan to financial institutions in May via its medium-term lending facility (MLF), it said in a statement on its website.

The total amount of capital that euro zone banks are expected to hold as a safety buffer would not change even if part of it was expressed as non-binding “guidance” by the watchdog, one of the European Central Bank’s top supervisors said on Wednesday.”This adjustment to the…concept would not change the total capital level; it would just be divided differently between requirements and guidance,” Sabine Lautenschlaeger, who represents the ECB’s supervisory arm on the bank’s executive board, said.